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What Is Charitable Trust?
A public charitable or religious institution can be formed either as a Trust or as a Society or as a Companyregistered u/s 25 of the Companies Act. It generally takes the form of a trust when it is formed primarily by one or more persons. To form a Society at least seven persons are required. Institutions engaged in promotion of art, culture, commerce etc. are often registered as non-profit companies.
These forms are enumerated as under:
- Charitable Trust settled by a settlor by a Trust Deed or under a Will.
- Charitable or religious institution / association can be formed as a society.
- Charitable institution can be formed by registering as a company u/s. 25 of the Companies Act, 1956, as non profit company (without addition to their name, the word "Limited" or "Private Limited").
Procedure for registration :
The following documents are required to be filed for registration of a Charitable Trust.
- Covering Letter
- Application Form in Form Schedule II under rule 6 duly notarized
- Court fee stamp of Rs. 2/- to be affixed on application form
- Certified copy of the Trust Deed
- Consent letter of Trustees. (Blank Form enclosed)
The office of the Charity Commissioner maintains a register containing all details of the Trust; viz.,Reg.No., name and address of the Trust, names of all the Trustees (Past & Present), mode ofsuccession of Trusteeship objects of the Trust, particulars of documents creating a Trust, Description of movable and immovable properties, particulars of encumbrances on trust property Etc. This register is known as P.T.Register. A certified copy of the P.T. Registrar in Schedule-I (Vide Rule 5) can be obtained by applying in simple application with Rs.10/- Court fee stamp by Paying prescribed fees for the same. It is advisable for all the trusts to have a certified copy of P.T. Register entry.
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Charitable Trust settled by a settlor by a Trust Deed or under a Will.